NK Singh urges rethink of fiscal policies amid post-pandemic challenges
NK Singh on Saturday said that India needs to rethink existing principles that guide country’s fiscal policy, including debt, which is expected to remain high in the post pandemic world.
«The global average debt post-pandemic now approaches 100% and it is projected to remain above pandemic levels for about half the world,” Singh said.
He was speaking at Kautilya Global Award 2023 and Fiscal Heritage award by TIOL, a platform for deliberations on public policy and taxation.
Singh along with former finance secretary Vijay Kelkar was conferred the Fiscal Heritage award. Leading economist professor Jagdish Bhagwati was conferred Kautilya Global award.
Defending the criticism by some economists and concerns raised about the high debt by the rating agencies, Singh said that rating agencies do not look at designated debt, but the government debt, which in this context concerns the states and the centre.
He said that countries need to think what kind of debt numbers and new principles would incentivize growth.
India’s total public liability increased marginally to Rs 149.86 lakh crore by the end of December 2023 from Rs 147.19 lakh crore at September-end, said the latest public debt management quarterly report released on Thursday.
Public debt accounted for 90% of total gross liabilities during the third quarter of this financial year. India’s gross liabilities went up to Rs 160.69 lakh crore at the end of December 2023 from Rs 157.84 lakh crore on September-end.
Talking of the next age reform noted economist Kelkar
